Shipping Industry

Topics: International Maritime Organization, Ship, Shipping Pages: 166 (44763 words) Published: May 12, 2013
1. The structure of shipping

shipper (sea) carrier consignee

Personnel and organisations

The major components of the industry can be divided into three sections

1. Ship interests
2. Cargo interests
3. Ancillary services

Ship interests
4. Shipowner
5. Shipmanager
6. Shipping line
7. Carrier

Shipping line
A company which operates a ship or ships between advertised ports on a regular basis and offers space for goods in return for freight based on a tariff of rates.

The shipowner or charterer or whoever enters into a contract with the shipper for the transportation of merchandise.

Cargo interest
8. Shipper
9. Charterer
10. Freight forwarder

A person or company who enters into a contract with a liner conference, shipping line or shipowner for the carriage of goods.

The shipper could be the seller of the cargo, the buyer of the cargo or some third party that solely arranges the transportation of the cargo.

A person or organisation that contracts to acquire a vessel, for a voyage or a period of time, to carry his cargo.

Freight forwarder
An increasing importance is being placed upon the freight forwarder, as he takes over many of the functions of the traditional shipowner/carrier yet retains interested in the cargo.

Many of the larger exporting companies maintain an inhouse shipping and distribution department which negotiates contracts of affreightment or carriage of goods for the company with the shipping line that trades to the area of the world where the company’s goods are destined.

However, there could probably be a lack of knowledge of exporting procedures, and a lack of expertise for negotiating, in a smaller company that exports.

Traditionally, the freight forwarder filled the need for expertise, with their knowledge of export/import documentation and procedure, plus their wide experience in dealing with shipping companies with regard to contracts and documents. The freight forwarder can offer services that come under four distinct headings 11. Purely as a shipper’s agent procuring transport and shipping services on behalf of the exporter and under his direction 12. As a forwarder offering a total expertise package to the exporter with regard to routeing and choice of mode together with ancillary documentation and perhaps packing service. With regard to transport he remains an agent for the exporter and bills of lading are made out in the shipper’s name and to the shipper’s account 13. As a principal, usually multi-modal transport operator, taking responsibility for the goods irrespective of who actually carries them. In many cases he may be the actual carrier for at least part of the transit. He issues the transport documents, combined bill of lading 14. As a specialist provider of ancillary selfstanding services, such as, custom clearance, warehousing, packing and port agency

Ancillary services
15. Brokers
16. Insurers
17. Surveyors
18. Classification societies
19. Flag state officials
20. Port management
21. Stevedores
22. Port authorities
23. Coastguard

The first of these headings is of relevance because of the countless persons met who calls himself a ‘broker’.

In relation to shipping the term broker covers a wide and varied list of activities

Agents employed (at a customary or agreed rate of commission or remuneration) to buy or sell goods, merchandise or marketable securities, or to negotiate insurance, freight rates or other matters, for a principal; the sales or transaction...
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